AwardWallet receives compensation from advertising partners for links on the blog. The opinions expressed here are our own and have not been reviewed, provided, or approved by any bank advertiser. Here's our complete list of Advertisers.
Credit card fees are creeping further into our everyday shopping habits. With some restaurants and other vendors requiring a fee to use a credit card, the rewards earned on those transactions are losing some of their value.
Other expenses have long required a fee to use a credit card, and one such expense is college tuition. With tuition being a significant cost these days, the prospect of earning points and miles by paying tuition can be appealing. However, paying tuition with a credit card often incurs a pesky fee. A 3% fee, for example, really takes a bite out of the rewards value, often making it a losing proposition.
Debit cards can be an alternative, but those cards historically haven’t earned valuable rewards — at least until recently. The introduction of the Southwest Rapid Rewards® Debit Card and United MileagePlus Debit Rewards Card, among others, offers some hope for earning points and miles on debit transactions. And if colleges charge a lower fee, or no fee at all, to use debit cards for tuition, it can definitely be worth exploring.
Let's take a look at some details.
Page Contents
Overview of Rewards-Earning Debit Cards
Traditionally, debit cards haven’t provided much in the way of rewards on purchases. The American Express Rewards Checking account has been an exception, earning 1X Membership Rewards points per $2 spent with its debit card.
But a few new contenders have entered the market. We will look at these miles-earning cards to see what they offer and then apply them to tuition payment examples.
Related: Paying Tuition With Credit Cards: When It’s Worth It and Which Cards Are the Most Rewarding
United MileagePlus Debit Rewards Card
The United MileagePlus Debit Rewards Card, launched in November 2025, allows users to earn valuable United MileagePlus miles on their debit card purchases.
The current launch offer for new account holders awards 10,000 United miles after $500 in purchases within four months. On top of the new cardholder bonus, you’ll earn United miles on debit purchases at the following rates:
- Earn 1 mile per $1 spent on United purchases.
- Earn 1 mile per $2 spent on all other qualifying transactions.
- Earn 2,500 bonus miles when you spend $10,000 each calendar year.
There’s also a “Balance Rewards” feature that may be appealing. For those who maintain a balance in their debit account, earnings work as follows:
- Earn up to 70,000 bonus miles each year based on your average account balance, with miles earned monthly.
- No monthly fee if your average account balance is at least $2,000. Otherwise, the monthly fee is $4, or $48 over the course of a year.
The tiers for earning on the account balance are:
| Average Daily Balance | Miles Earned Each Month | Miles Earned Over the Course of a Year | Monthly Fee |
|---|---|---|---|
| $0-$2,000 | N/A | N/A | $4 |
| $2,000-$2,499 | N/A | N/A | Waived |
| $2,500-$4,999 | 208 | 2,500 | Waived |
| $5,000-$9,999 | 416 | 5,000 | Waived |
| $10,000-$24,999 | 1,250 | 15,000 | Waived |
| $25,000-$49,999 | 2,500 | 30,000 | Waived |
| $50,000+ | 5,833 | 70,000 | Waived |
To apply for the United MileagePlus Debit Rewards Card, click here.
Earning United miles on tuition
For the purposes of this comparison, we’ll assume a $20,000 annual tuition payment. Obviously, this number will vary widely, but it provides a helpful reference point. For the United MileagePlus Debit Card discussion, we’ll ignore the Balance Rewards feature and focus solely on the potential earnings from spend.
Including the launch offer, here’s what your year-one earnings would look like on $20,000 of spend with the United debit card:
- 10,000 miles from the launch offer
- 10,000 miles from spending (1 mile per $2)
- 2,500 bonus miles for $10,000 in annual spend
That’s a total of 22,500 miles in the first year (note that the launch offer wouldn’t apply in subsequent years). AwardWallet users redeem United miles at an average value of 1.97¢ each, which puts the return on this tuition expense at over $440.
If there were a 3% fee on these charges, the $600 cost ($20,000 x .03) would clearly outweigh the return outlined above. But if an academic institution charges a small percentage or a flat fee for debit card payments, this could be a meaningful win on an expense that wouldn’t normally earn rewards.
Related: Which United Credit Card Matches Your Style?
Southwest Rapid Rewards® Debit Card
Around the same time as United, Southwest launched a Southwest Airlines debit card. This card allows users to earn Rapid Rewards on debit card purchases, though the structure differs from that of the United debit card.
New applicants receive a one-time bonus of 2,500 Rapid Rewards points when they meet the following requirements within 90 days of opening an account:
- Establish and receive at least two direct deposits, recurring monthly or more frequently, and
- Make at least $100 in qualifying purchases using the card within 90 days of account opening.
This offer isn’t as lucrative as the United bonus and also requires direct deposit activity. That said, the card does offer additional benefits. There’s an annual spend bonus that allows you to earn up to 7,500 bonus points each year on your anniversary, based on the following annual net purchases:
- 2,500 bonus points: Spend $5,000.00 to $9,999.99
- 5,000 bonus points: Spend $10,000.00 to $14,999.99
- 7,500 bonus points: Spend $15,000.00+
The earning rates on the Southwest debit card are similar to its United counterpart:
- Earn 1 point per $1 spent on eligible Southwest Airlines purchases and qualifying dining and subscription purchases, including cable, internet, phone, streaming services, utilities, and insurance premiums.
- Earn 1 point per $2 spent on other qualifying everyday purchases.
It’s nice to see additional categories like dining and insurance earn 1 point per dollar. Insurance, in particular, is another expense that often comes with a credit card fee, making this an attractive alternative. That said, many of these categories will still be better served by a credit card that earns more than one point per dollar.
To apply for the Southwest Rapid Rewards® Debit Card, click here.
Earning Southwest points on tuition
Let's once again consider the year-one earnings on $20,000 of spend with the Southwest debit card:
- 2,500 points from the bonus offer
- 10,000 points from spend (1 point per $2)
- 7,500 bonus points for $15,000 in annual spend
That adds up to 20,000 points in the first year. AwardWallet users redeem Southwest points for an average value of 1.52¢ each, resulting in a $304 return on your tuition expense.
This isn’t as lucrative as the United debit card in the first year, but since valuations can be subjective, both cards are worth evaluating based on your specific situation. There’s also another important consideration to keep in mind: the Southwest Companion Pass.
Related: Comparing Southwest Credit Cards
Don't forget about the Southwest Companion Pass
The Southwest Companion Pass allows holders to take a companion with them for free, plus taxes and fees, on any Southwest flight in the year the pass is earned and the following calendar year. This can be very lucrative for Southwest loyalists, and the Southwest debit card can help get you there.
All points earned through spending on the debit card count as Companion Pass qualifying points. In addition, the debit card deposits 7,500 Companion Pass qualifying points into your Rapid Rewards account each calendar year.
That means you’d earn 27,500 Companion Pass points in our tuition example, putting you roughly one-fifth of the way toward the 135,000 points required.
Bottom Line
There are several expenses that typically charge a fee if you want to use a credit card, and few are as potentially lucrative as college tuition. If you find yourself in this phase of life, your college may allow debit card payments at a reduced fee. If so, these new debit cards from United and Southwest could be a smart way to earn valuable points and miles on an otherwise unrewarding expense.
The same principle applies to any situation where you’re trying to avoid a credit card fee. In those cases, the introduction of rewards-earning debit cards is certainly an alternative worth exploring.
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.